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Home My WebLink About2. VB Minutes 11/20/2012MINUTES OF THE REGULAR MEETING OF THE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT November 20, 2012 CALL TO ORDER Mayor Pro Tern Hoefert called the meeting to order at 7:05 p.m. ROLL CALL Present: Mayor Pro Tern Paul Hoefert Trustee Arlene Juracek Trustee John Korn Trustee John Matuszak Trustee Steven Polit Trustee Michael Zadel Absent: Mayor Irvana Wilks Mayor Pro Tern Hoefert stated in the absence of Mayor Wilks he would conduct the meeting. PLEDGE PLEDGE OF ALLEGIANCE Mayor Pro Tern Hoefert led the Pledge of Allegiance. INVOCATION INVOCATION Trustee Juracek gave the Invocation. MINUTES MINUTES Trustee Korn, seconded by Trustee Polit, moved to approve the minutes of the regular Village Board meeting held November 7, 2012. Upon roll call: Ayes: Hoefert. Juracek, Korn, Matuszak, Polit, Zadel Nays: None Motion carried. MONTHLY REPORT MONTHLY FINANCIAL REPORT AND APPROVE BILLS & APPROVE BILLS Mayor Pro Tern Hoefert stated the next item on the agenda, "MONTHLY FINANCIAL REPORT AND APPROVE BILLS" was noted by an asterisk and unless there was a request to remove an item(s), all items further listed in that manner would be considered with one (1) vote as business item "IX. CONSENT AGENDA." MAYOR'S REPORT MAYOR'S REPORT A. Proclamation: "Teddy Bear Walk Week," November 25 — December 1, 2012 TEDDY BEAR WALK Mr. Richard Tani, Mount Prospect Library Board, accepted the proclamation. Mr. Tani thanked WEEK Mayor Pro Tern Hoefert and the Village Board for recognizing the annual community event. Mr. Tani extended an invitation to the community to participate in the December 1st Teddy Bear Walk. Mayor Pro Tern Hoefert expressed special thanks to Ms. Dolores Hough for her leadership in organizing this long- standing family tradition. AMEND CHAPTER B. 1 St reading of an Ordinance Amending Chapter 13 (Alcoholic Liquors) 13 (ALCOHOLIC LIQUORS) OF THE Mayor Pro Tern Hoefert presented for a first (1 reading an ordinance amending Chapter 13 VILLAGE CODE (Alcoholic Liquors). This ordinance adds one (1) Class "F -3" liquor license issued to Canta Napoli Ristorante d /b /a Canta Napoli located at 90 East Busse Avenue. Chris and Rosalia DiFranco (applicants) are purchasing Canta Napoli; transfer of ownership is contingent upon approval of the liquor license. 1 of 5 Mr. and Mrs. DiFranco have been in the restaurant business for over 25 years; currently own other pizzerias with liquor licenses. Mr. and Mrs. DiFranco highlighted the menu which will remain southern Italian style cuisine and introduced the chef, Mr. Mario Lambordi. Mayor Pro Tern Hoefert welcomed the new owners; Canta Napoli is a fine establishment, pleased new owners keeping it in the community. Trustee Korn, seconded by Trustee Polit, moved to waive the rule requiring two (2) readings of an ordinance: Upon roll call: Ayes: Hoefert, Juracek, Korn, Matuszak, Polit, Zadel Nays: None Motion carried. Trustee Zadel, seconded by Trustee Polit, moved for approval of Ordinance No. 6038: AN ORDINANCE AMENDING CHAPTER 13 (ALCOHOLIC ORD 6038 LIQUORS) OF THE MOUNT PROSPECT VILLAGE CODE Upon roll call: Ayes: Hoefert, Juracek, Korn, Matuszak, Polit, Zadel Nays: None Motion carried. APPOINTMENTS APPOINTMENTS None. Before moving to Citizens to Be Heard, Mayor Pro Tern Hoefert recognized two (2) Boy Scouts in attendance; each are working on merit badges. Steven Van Dyke -Rohan Troop 23 Citizenship in the Community Ryan Parks Troop 155 Communications CITIZENS TO BE COMMUNICATIONS AND PETITIONS — CITIZENS TO BE HEARD HEARD None. CONSENT AGENDA CONSENT AGENDA Trustee Zadel, seconded by Trustee Juracek, moved to approve the following business items: FINANCIAL REPORT 1. Monthly Financial Report — October 2012 & APPROVE BILLS 2. Bills dated November 1 — November 14, 2012 3. A RESOLUTION TO INCLUDE TAXABLE ALLOWANCES AS ILLINOIS MUNICIPAL RES 43 -12 RETIREMENT FUND (IMRF) EARNINGS 4. Request Village Board approval to accept proposal for general and auto liability third - GENERAL & AUTO Party claims in an amount not to exceed $9,496. LIABILITY CLAIMS VBA 46 -12 Upon roll call: Ayes: Hoefert, Juracek, Korn, Matuszak, Polit, Zadel Nays: None Motion carried. OLD BUSINESS OLD BUSINESS None. NEW BUSINESS NEW BUSINESS A.1 st reading of an Ordinance to Amend Water and Sewer Rates Set Forth in Appendix A, Division II of the Village Code of Mount Prospect. 2 of 5 AMEND WATER Mayor Pro Tern Hoefert presented for a first (1 reading an ordinance to amend water and AND SEWER RATES sewer rates set forth in Appendix A, Division II of the Village Code of Mount Prospect. This SET FORTH IN ordinance increases the combined water and sewer rate by 9.5% effective for billings after APPENDIX A, January 1, 2013. DIVISION II OF THE VILLAGE CODE Finance Director Dave Erb provided background information and staff recommendation. Since 1990 the Village has followed the practice of approving moderate annual increases in water and sewer rates. The 2013 Budget includes an anticipated 9.5% increase in the combined water and sewer rate. A five -year rate study prepared as part of the City of Chicago water rate increase indicated a need for higher than typical adjustments to Village rates after January 1, 2013. Mr. Erb provided an overview of the recommended rates for inside and outside the Village; water, sewer and combined. Mr. Erb stated the cost to a Mount Prospect household using 8,000 gallons of water during a one -month period, would be $67.36, an increase of $5.84. There are no increases for sewer users not connected to the Village's water system; located inside or outside the Village the monthly charge remains $4.58. Mr. Erb stated the Village will notify users of Village water of the rate increase prior to the effective date. Staff recommend Village Board approval of the proposed ordinance increasing the water and sewer rates effective for bills rendered on or after January 1, 2013. Mr. Erb provided the following in response to questions from the Village Board: ■ Water purchased from the Village by Prospect Heights is at the Village's inside rate. All other non - Village purchases are at the "outside" of the Village rate; double the rate. -All JAWA member communities are subject to the Chicago rate increase. Village Board Comments -City of Chicago is passing on their costs for maintenance of infrastructure to communities purchasing Lake Michigan water. ■JAWA conducting significant research to find alternatives; mitigate further increases. -Village has done due diligence by planning /phasing in water rate increases. Trustee Zadel, seconded by Trustee Juracek, moved to waive the rule requiring two (2) readings of an ordinance: Upon roll call: Ayes: Hoefert, Juracek, Korn, Matuszak, Polit, Zadel Nays: None Motion carried. Trustee Juracek, seconded by Trustee Polit, moved for approval of Ordinance No. 6039: ORD 6039 AN ORDINANCE TO AMEND WATER AND SEWER RATES SET FORTH IN APPENDIX A, DIVISION II OF THE VILLAGE CODE OF MOUNT PROSPECT Upon roll call: Ayes: Hoefert, Juracek, Korn, Matuszak, Polit, Zadel Nays: None Item B. was approved under the Consent Agenda. MANAGER'S VILLAGE MANAGER'S REPORT REPORT Assistant Village Manager Dave Strahl stated the Finance Department had two (2) requests for Village Board approval; updated Fund Balance Policy and updated Investment Policy. Finance Director Dave Erb presented background information and staff recommendations. FUND BALANCE POLICY A. Request Village Board approval to accept updated Fund Balance Policy. Implemented in 1999 the Village's Fund Balance Policy is reviewed annually during the budget process. 3 of 5 The initial policy established a target fund balance level in the General Fund of 25% and reserve levels for all other special revenue, debt service, enterprise, internal service and trust funds managed by the Village. While, typically the review is simply to ensure compliance with current accounting standards, this year's review addressed comments included in the management letter from the 2011 annual audit. The management letter noted a number of funds were found to be in non - compliance with the Village's fund balance policy; upon review it was noted the specific policy levels did not allow for flexibility in managing fund balances. Mr. Erb highlighted other changes to the policy including: 1) creation of ranges for maintaining fund balance levels — 20% to 25% range and 2) defining of fund balance requirements for the CDBG Fund — to comply with HUD reporting guidelines the Village's 25% fund balance requirement was removed. The auditor has approved the revisions; the policy will be in the 2013 budget. Staff recommend the Village Board approve the updated Fund Balance Policy which serves as a management decision guide for surplus Village funds. Village Board Comments -The Village's 25% General Fund Balance is met; but some funds may not be at that level. -Update is a housekeeping revision; allows for audit flexibility. -Primary concern is maintaining 25% General Fund balance; fluctuation of other fund balances is acceptable. Trustee Zadel, seconded by Trustee Polit, moved for approval of request to accept updated Fund Balance Policy. Upon roll call: Ayes: Hoefert, Juracek, Korn, Matuszak, Polit, Zadel Nays: None Motion carried. INVESTMENT B. Request Village Board approval to accept updated Investment Policy. POLICY The Village's investment policy was implemented in 1985 to assist with the management of surplus funds; the policy sets forth requirements for the investment of public funds. The policy is reviewed annually by the Finance Director and has been modified several times since 1985; last modification was in 2007. During this year's annual audit of Village finances the auditor identified non - compliance with Section 11.0 (Diversification) of the investment policy. The existing policy does not allow for an appropriate level of diversification of assets; balance levels between 10% and 40% are not sufficient for the amount of reserves currently available for investment. Until market conditions improve recommended levels for diversification should be increased to a not -to- exceed level of 50 %. Mr. Erb reviewed additional revisions to the updated Investment Policy: 1) policy scope; 2) investment objectives; 3) delegation of authority; 4) ethics and conflicts of interest and suitable investments. Mr. Erb also referenced the updated Exhibit "A "; the list of authorized financial institutions and broker /dealers. Upon receipt of the updated policy these institutions will be required to sign off on its receipt and understanding of the contents. Village Board Comments -Investment Policy is very important; updates are necessary. -Important issue to taxpayers; know where public funds are invested. -Investment Policy is essential to well -being of community. Trustee Juracek, seconded by Trustee Zadel, moved for approval of request to accept updated Investment Policy. 4 of 5 Upon roll call: Ayes: Hoefert, Juracek, Korn, Matuszak, Polit, Zadel Nays: None Motion carried. Item C. was approved under the Consent Agenda. D. Status Assistant Village Manager Strahl announced the following items of business -Tree Lighting and Holiday Market — Village Keystone /Community Center Wednesday, November 21 st — 5:00 pm Tree donated by Mount Prospect resident. -Thanksgiving Holiday —Village Hall closed: November 21 st — 3:00 pm November 22 and 23 -Committee of the Whole Meeting — November 27 Cancelled OTHER BUSINESS OTHER BUSINESS Trustee Polit stated the Village's loose leaf collection has ended; only bagged leaves will be collected. Leaves in paper bags will be collected at no cost on residents' regular garbage day through the second week of December. ADJOURN Trustee Korn reminded residents the leaf collection schedule is well publicized before and during the collection period; however, he did ask the local newspapers to help by running an article about the leaf program collection deadlines. Mayor Pro Tern Hoefert and Trustee Polit extended a thank you to the many residents who comply with program guidelines; keeping the very popular program an efficient operation and the streets clear. Mayor Pro Tern Hoefert stated Mount Prospect has much to be grateful for in 2012; hoped all will join in giving thanks. ADJOURN There being no further business to discuss Mayor Pro Tern Hoefert asked for a motion to adjourn. Trustee Korn, seconded by Trustee Polit, moved to adjourn the meeting. Upon roll call: Ayes: Hoefert, Juracek, Korn, Matuszak, Polit, Zadel Nays: None Motion carried. The November 20, 2012 Village Board meeting adjourned at 7:48 p.m. M. Lisa Angell Village Clerk 5 of 5